KTFA:
Mountainman: As People Will SOON Realize......These MAJOR Fed Policy Changes are Done Behind the Curtains.......and (THEY) Implement A {STRATEGIC} Plan of ACTION......this in the FEDS is No Different......It will Be Ugly......but it is A NECESSARY Means that Will Bring About WHAT Our Country NEEDS in it's NEW Found GOLD Backed VALUE in the END......and POWER of PURCHASE will RISE From the ASHES of CHAOS....the FACT One Is Seeing this (NOW) Coming to "CENTER STAGE" should Encourage those In this Investment.....IMO
Blessings,Mountainman (8)=New Beginnings.......for the U S A .....
Thunderhawk: Backdoc Alert
The Fed Is Meeting in April to Talk About June
The Fed will stand pat this week. We know it, they know it. So what then will the Fed talk about for two days?
....
Mountainman: As People Will SOON Realize......These MAJOR Fed Policy Changes are Done Behind the Curtains.......and (THEY) Implement A {STRATEGIC} Plan of ACTION......this in the FEDS is No Different......It will Be Ugly......but it is A NECESSARY Means that Will Bring About WHAT Our Country NEEDS in it's NEW Found GOLD Backed VALUE in the END......and POWER of PURCHASE will RISE From the ASHES of CHAOS....the FACT One Is Seeing this (NOW) Coming to "CENTER STAGE" should Encourage those In this Investment.....IMO
Blessings,Mountainman (8)=New Beginnings.......for the U S A .....
Thunderhawk: Backdoc Alert
The Fed Is Meeting in April to Talk About June
The Fed will stand pat this week. We know it, they know it. So what then will the Fed talk about for two days?
....
The April meeting of the Federal Open Market Committee (FOMC) will be about the June meeting. Policymakers' fundamental challenge is that the FOMC doesn't want to rule out a June hike, but the markets already have.
They need to decide if they want to make a play for a June hike and how to communicate such a message. They'll probably want to keep the option for a June hike open and hence will alter this week’s statement accordingly.
The minutes of the March FOMC meeting dissipated any remaining mystery surrounding the April FOMC meeting:
"A number of participants judged that the headwinds restraining growth and holding down the neutral rate of interest were likely to subside only slowly. In light of this expectation and their assessment of the risks to the economic outlook, several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate."
While “several” participants thought April should be off the table, only “some” thought a rate hike then would be warranted. That “some” has likely turned to just a few now. Aside from the employment report, incoming data have not been particularly supportive for the hawks. GDP trackers from the Atlanta and New York Federal Reserves, for instance, suggest what appears again to be an anemic first quarter.
While this is likely just another instance of the recent curse of low growth in the first quarter and does not reflect underlying economic activity, the Fed still needs to wait for additional data prior to another rate hike.
So while April is out, what about June? June is tricky. Read More at:
http://ift.tt/1XUf66r
************
Mountainman: As FORCASTED.....the MONETARY WEATHERMAN is {RIGHT} On TARGET......As this CASCADE of GLOBAL PHASES is In Full IMPLEMENTATION Mode......It Will Be A (CONTROLLED) GLOBAL SPIRAL........this is Just the Beginning W/More to Come.....Can A FIAT/DOLLAR become A Butterfly of GOLD ???.......Well It Will Be In the END......IMO Thanks,Don
Blessings,Mountainman (8)=New Beginnings.....Of A CONTROLLED.....{GLOBAL SPIRAL}......IMO
Don961: Defaults hit highest level since '09 bust
Matt Krantz, USA TODAY 6:30 a.m. EDT April 18, 2016
Get ready to step over some landmines, investors. The number of companies defaulting on their debt is hitting levels not seen since the financial crisis, and it's not just a problem for bondholders.
So far this year, 46 companies have defaulted on their debt, the highest level since 2009, according to S&P Ratings Services. Five companies defaulted this week, based on the latest data available from S&P Ratings Services. That includes New Jersey-based specialty chemical company Vertellus Specialties and Ohio-based iron ore producer Cliffs Natural. Of the world's defaults this year, 37 are of companies based in the U.S.
Meanwhile, coal producer Peabody Energy (BTU) and surfwear seller Pacific Sunwear (PSUN) this week filed plans for bankruptcy protection. Shares of Peabody have dropped 97% over the past year to $2 a share and Pacific Sunwear stock is off 98% to 4 cents a share.
The implosion of oil prices is the top reason for the rise in defaults as it makes it harder for energy companies to repay debt. The Federal Reserve's decision to hike short-term interest rates last year along with slowing global growth are also putting pressure on companies' ability to service their debt.
Defaults are clearly an issue for bondholders, since these events mean they no longer receive payments on money lent to these companies. But the situations can be brutal for stock investors, too, as restructuring after a default can leave shares essentially worthless as the bondholders often become the new owners of the company. The rise of defaults hold several lessons for stock investors, including:
* Beware speculating on energy stocks.
Brave investors have been trying to call a bottom in energy companies' profits for several quarters now. But the sector's pain continues as interest payments get all that more onerous given the massive drop in energy prices. Of the 46 global defaults this year, 13 are in the oil and gas sector, says Diane Vazza, head of global fixed income research at S&P Ratings Services. The surge in defaults is largely "fallout from multi-year lows in commodity prices," she says. Energy profits keep falling. Energy sector profits are expected to drop another 107% in the first quarter of 2016 - even worse than the 55% drop in the first quarter of 2015, says S&P Global Market Intelligence.
* Cut losses. "It will come back" are famous last words for investors. When investing in individual stocks, especially some that could be even remotely flirting with default, it's best to cut losses short. Investors in coal producer Peabody Energy defaulted on March 18, leading to the company to file for bankruptcy protection in April. Don't think it's just a problem for investors holding the company's debt. Stock investors watched $1.3 billion in shareholder wealth burn up in just a year as the stock dropped from $73 a share to roughly $2 a share now. Had investors cut their losses at 10% of what they paid, they could have avoided this catastrophe.
* Mind companies on the bubble. Companies don't usually just default without warning. Ratings agencies routinely rate companies' credit worthiness and sound an alarm when the financials deteriorate. S&P Ratings keeps a list of the companies with the very lowest credit ratings at risk of a downgrade. The number of such "Weakest Links" jumped to 242 in March from 235 in February.
http://ift.tt/1YD0Ija
************
Mountainman: Oh Buddy.....CHINA and the Race to Move from EAST to WEST.....This is CONTROLLED CHAOS....So to Speak......CHINA and The USA Know A Settling of Ones DEBTS are at Play and Now the CLOCK is Ticking Away......Strap On Your Big Boy/Girl Pants....
..
We are in for A WAVE of Change here and The CHINESE MARKETS Knows .....Just like the USA Markets Know.....IMO
Blessings,Mountainman (8)=New Beginnings.....for the YUAN........
Thunderhawk: Global investors expected to pull $538b out of China
Global investors are expected to pull $538 billion out of China's slowing economy in 2016, the Institute of International Finance (IIF) estimated, although the pace of outflows has dropped.
That number would be down a fifth from the $674 billion pulled out last year, the industry association said, but could accelerate again if fears re-emerge of a ‘disorderly’ drop in the yuan, or the renminbi, as the currency is also known, Reuters reported.
Capital exodus from China can influence emerging markets more generally, partly because of its sheer size and partly because sustained outflows can trigger more exchange rate volatility, which could then feed a fresh wave of outflows.
"A sharp drop in the renminbi would likely spark a renewed sell-off of global risk assets and trigger a flight of portfolio capital from emerging markets," the IIF said in a new report.
"Moreover, a sharp depreciation of the renminbi could lead to a round of competitive devaluation in other emerging markets, particularly in those with close trade linkages to China."
For now, though, outflows are slowing. Roughly $35 billion was pulled out in March, bringing the total since the start of the year to around $175 billion — well below the pace seen in the second half of 2015.
The IIF cited progress Chinese authorities had made in easing worries about the yuan's direction. They have emphasized there is more focus on its value against a basket of currencies, rather than just the US dollar.
One ‘important unknown’, however, is the threshold of currency reserves below which Chinese authorities would start to worry. They might then either allow the yuan to fall again or markedly tighten capital controls.
Headline reserves have already fallen from $4 trillion in June 2014 to around $3.2 trillion in February 2016. That is still high compared with most countries.
But using another calculation, developed by the IMF, the cushion between actual reserves and what could be required, has dropped to 15 percent from 50 percent just under two years ago.
"From this perspective, continued large capital outflows could lower the country's official reserves to a level that is regarded as inadequate without a serious tightening of capital controls," the IIF said.
China accounted for almost 30 percent of total foreign capital inflows to emerging markets between 2000 and the end of 2014, a total of around $3.6 trillion.
Since then, however, outflows have taken hold, driven mainly by foreign banks cutting credit to Chinese firms, the firms themselves paying back their debt or international investors reducing holdings of yuan deposits.
http://ift.tt/1NygxqH
************
Frank26: LOL ............... Come on ....... Just once for today OK? :
TA DA FREAKEN DA !!!
Walkingstick: SNIPPETS.... BY REQUEST
Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding December 22, 2015
C. Foreign Exchange Policy
18. The government will maintain the peg with the U.S. dollar. The peg provides a key nominal anchor in a highly uncertain environment with policy capacity weakened by the conflict with ISIS.
19. The government will gradually remove remaining exchange restrictions and multiple currency practice (MCP) with a view to eliminating exchange rate distortions. Such a move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement will send a positive signal to the investment community that Iraq is committed to maintain an exchange system that is free of restrictions and MCPs for current international transactions and thus facilitate creation of a favorable business climate.
As a first step, the government will, by end-February 2016, amend the Investment Law, or issue clarifying implementing regulations, to remove the limitation on transfer of investment proceeds that gives rise to an exchange restriction, as recommended by a recent technical assistance mission of the IMF.
20. The government will implement reforms on anti-money laundering and combating the financing of terrorism (AML/CFT). This will improve the integration of the domestic financial system into the global economy and lower transaction costs, improve governance, and reduce the size of the informal sector. As a first step, the government will, by end-February 2016, draft, with the help of IMF technical assistance, and adopt a by-law to set up a mechanism to comply with the relevant United Nations Security Council resolutions related to terrorism financing and Recommendation 6 of the Financial Action Task Force on Money Laundering (FATF).
F. Banking Supervision
28. As of June 30, 2015, there were 56 banks operating in Iraq including 7 state-owned banks (SOB) of which one is an Islamic bank, 32 Iraqi private banks, of which 6 Islamic banks, and 17 foreign branches, of which 5 are Islamic banks. The SOBs dominate the financial sector and account for the bulk of assets and credits.
Three of the SOBs, Rafidain Bank, Rasheed Bank and Trade Bank of Iraq (TBI), cluster around 89 percent of the banking system’s assets. The financial positions of Rasheed Bank and Rafidain Bank are fragile following years of quasi-fiscal operations.
As a first step to restructure these banks, the Ministry of Finance will, by endFebruary 2016, appoint international auditors to audit the latest financial statements of Rasheed Bank and Rafidain Bank according to international standards (structural benchmark, Table 2), in cooperation with the Executive Committee for the restructuring of these banks and the World Bank.
29. The CBI will continue to implement reform measures to enhance the stability of the banking sector in Iraq which includes inter alia: · Introducing the international bank account number (IBAN) system in Iraq; · Increasing the capital requirement of banks to ID 250 billion ($214 million), a level to which all private banks except one have increased their capital;
Contracting a consultant to assist the CBI in rating banks, whereby they rated 17 banks: three banks were rated “satisfactory”, eight banks rated “fair” and six banks “marginal”; · Contacting a consultant to assist the CBI in upgrading the prudential regulations on “Liquidity” and “Capital Adequacy Ratio”; ·
Working on reviewing and assessing CBI prudential regulations with the assistance of the IMF Middle East Technical Assistance Center (METAC); · Preparing a Deposit Insurance Scheme which stipulates the establishment of a corporation to be licensed by the CBI, of which banks will have the opportunity to take a share in the capital; · Contracting a private firm to provide the CBI with a credit registry system for sharing information among banks on their common existing and potential borrowers; ·
Issuing a banking law for financial institutions offering Islamic services; and · Penalizing financially and administratively banks and non-banks financial institutions for any non-compliance with laws and regulations in force.
http://ift.tt/1XTsqZ0
They need to decide if they want to make a play for a June hike and how to communicate such a message. They'll probably want to keep the option for a June hike open and hence will alter this week’s statement accordingly.
The minutes of the March FOMC meeting dissipated any remaining mystery surrounding the April FOMC meeting:
"A number of participants judged that the headwinds restraining growth and holding down the neutral rate of interest were likely to subside only slowly. In light of this expectation and their assessment of the risks to the economic outlook, several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate."
While “several” participants thought April should be off the table, only “some” thought a rate hike then would be warranted. That “some” has likely turned to just a few now. Aside from the employment report, incoming data have not been particularly supportive for the hawks. GDP trackers from the Atlanta and New York Federal Reserves, for instance, suggest what appears again to be an anemic first quarter.
While this is likely just another instance of the recent curse of low growth in the first quarter and does not reflect underlying economic activity, the Fed still needs to wait for additional data prior to another rate hike.
So while April is out, what about June? June is tricky. Read More at:
http://ift.tt/1XUf66r
************
Mountainman: As FORCASTED.....the MONETARY WEATHERMAN is {RIGHT} On TARGET......As this CASCADE of GLOBAL PHASES is In Full IMPLEMENTATION Mode......It Will Be A (CONTROLLED) GLOBAL SPIRAL........this is Just the Beginning W/More to Come.....Can A FIAT/DOLLAR become A Butterfly of GOLD ???.......Well It Will Be In the END......IMO Thanks,Don
Blessings,Mountainman (8)=New Beginnings.....Of A CONTROLLED.....{GLOBAL SPIRAL}......IMO
Don961: Defaults hit highest level since '09 bust
Matt Krantz, USA TODAY 6:30 a.m. EDT April 18, 2016
Get ready to step over some landmines, investors. The number of companies defaulting on their debt is hitting levels not seen since the financial crisis, and it's not just a problem for bondholders.
So far this year, 46 companies have defaulted on their debt, the highest level since 2009, according to S&P Ratings Services. Five companies defaulted this week, based on the latest data available from S&P Ratings Services. That includes New Jersey-based specialty chemical company Vertellus Specialties and Ohio-based iron ore producer Cliffs Natural. Of the world's defaults this year, 37 are of companies based in the U.S.
Meanwhile, coal producer Peabody Energy (BTU) and surfwear seller Pacific Sunwear (PSUN) this week filed plans for bankruptcy protection. Shares of Peabody have dropped 97% over the past year to $2 a share and Pacific Sunwear stock is off 98% to 4 cents a share.
The implosion of oil prices is the top reason for the rise in defaults as it makes it harder for energy companies to repay debt. The Federal Reserve's decision to hike short-term interest rates last year along with slowing global growth are also putting pressure on companies' ability to service their debt.
Defaults are clearly an issue for bondholders, since these events mean they no longer receive payments on money lent to these companies. But the situations can be brutal for stock investors, too, as restructuring after a default can leave shares essentially worthless as the bondholders often become the new owners of the company. The rise of defaults hold several lessons for stock investors, including:
* Beware speculating on energy stocks.
Brave investors have been trying to call a bottom in energy companies' profits for several quarters now. But the sector's pain continues as interest payments get all that more onerous given the massive drop in energy prices. Of the 46 global defaults this year, 13 are in the oil and gas sector, says Diane Vazza, head of global fixed income research at S&P Ratings Services. The surge in defaults is largely "fallout from multi-year lows in commodity prices," she says. Energy profits keep falling. Energy sector profits are expected to drop another 107% in the first quarter of 2016 - even worse than the 55% drop in the first quarter of 2015, says S&P Global Market Intelligence.
* Cut losses. "It will come back" are famous last words for investors. When investing in individual stocks, especially some that could be even remotely flirting with default, it's best to cut losses short. Investors in coal producer Peabody Energy defaulted on March 18, leading to the company to file for bankruptcy protection in April. Don't think it's just a problem for investors holding the company's debt. Stock investors watched $1.3 billion in shareholder wealth burn up in just a year as the stock dropped from $73 a share to roughly $2 a share now. Had investors cut their losses at 10% of what they paid, they could have avoided this catastrophe.
* Mind companies on the bubble. Companies don't usually just default without warning. Ratings agencies routinely rate companies' credit worthiness and sound an alarm when the financials deteriorate. S&P Ratings keeps a list of the companies with the very lowest credit ratings at risk of a downgrade. The number of such "Weakest Links" jumped to 242 in March from 235 in February.
http://ift.tt/1YD0Ija
************
Mountainman: Oh Buddy.....CHINA and the Race to Move from EAST to WEST.....This is CONTROLLED CHAOS....So to Speak......CHINA and The USA Know A Settling of Ones DEBTS are at Play and Now the CLOCK is Ticking Away......Strap On Your Big Boy/Girl Pants....
..
We are in for A WAVE of Change here and The CHINESE MARKETS Knows .....Just like the USA Markets Know.....IMO
Blessings,Mountainman (8)=New Beginnings.....for the YUAN........
Thunderhawk: Global investors expected to pull $538b out of China
Global investors are expected to pull $538 billion out of China's slowing economy in 2016, the Institute of International Finance (IIF) estimated, although the pace of outflows has dropped.
That number would be down a fifth from the $674 billion pulled out last year, the industry association said, but could accelerate again if fears re-emerge of a ‘disorderly’ drop in the yuan, or the renminbi, as the currency is also known, Reuters reported.
Capital exodus from China can influence emerging markets more generally, partly because of its sheer size and partly because sustained outflows can trigger more exchange rate volatility, which could then feed a fresh wave of outflows.
"A sharp drop in the renminbi would likely spark a renewed sell-off of global risk assets and trigger a flight of portfolio capital from emerging markets," the IIF said in a new report.
"Moreover, a sharp depreciation of the renminbi could lead to a round of competitive devaluation in other emerging markets, particularly in those with close trade linkages to China."
For now, though, outflows are slowing. Roughly $35 billion was pulled out in March, bringing the total since the start of the year to around $175 billion — well below the pace seen in the second half of 2015.
The IIF cited progress Chinese authorities had made in easing worries about the yuan's direction. They have emphasized there is more focus on its value against a basket of currencies, rather than just the US dollar.
One ‘important unknown’, however, is the threshold of currency reserves below which Chinese authorities would start to worry. They might then either allow the yuan to fall again or markedly tighten capital controls.
Headline reserves have already fallen from $4 trillion in June 2014 to around $3.2 trillion in February 2016. That is still high compared with most countries.
But using another calculation, developed by the IMF, the cushion between actual reserves and what could be required, has dropped to 15 percent from 50 percent just under two years ago.
"From this perspective, continued large capital outflows could lower the country's official reserves to a level that is regarded as inadequate without a serious tightening of capital controls," the IIF said.
China accounted for almost 30 percent of total foreign capital inflows to emerging markets between 2000 and the end of 2014, a total of around $3.6 trillion.
Since then, however, outflows have taken hold, driven mainly by foreign banks cutting credit to Chinese firms, the firms themselves paying back their debt or international investors reducing holdings of yuan deposits.
http://ift.tt/1NygxqH
************
Frank26: LOL ............... Come on ....... Just once for today OK? :
TA DA FREAKEN DA !!!
Walkingstick: SNIPPETS.... BY REQUEST
Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding December 22, 2015
C. Foreign Exchange Policy
18. The government will maintain the peg with the U.S. dollar. The peg provides a key nominal anchor in a highly uncertain environment with policy capacity weakened by the conflict with ISIS.
19. The government will gradually remove remaining exchange restrictions and multiple currency practice (MCP) with a view to eliminating exchange rate distortions. Such a move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement will send a positive signal to the investment community that Iraq is committed to maintain an exchange system that is free of restrictions and MCPs for current international transactions and thus facilitate creation of a favorable business climate.
As a first step, the government will, by end-February 2016, amend the Investment Law, or issue clarifying implementing regulations, to remove the limitation on transfer of investment proceeds that gives rise to an exchange restriction, as recommended by a recent technical assistance mission of the IMF.
20. The government will implement reforms on anti-money laundering and combating the financing of terrorism (AML/CFT). This will improve the integration of the domestic financial system into the global economy and lower transaction costs, improve governance, and reduce the size of the informal sector. As a first step, the government will, by end-February 2016, draft, with the help of IMF technical assistance, and adopt a by-law to set up a mechanism to comply with the relevant United Nations Security Council resolutions related to terrorism financing and Recommendation 6 of the Financial Action Task Force on Money Laundering (FATF).
F. Banking Supervision
28. As of June 30, 2015, there were 56 banks operating in Iraq including 7 state-owned banks (SOB) of which one is an Islamic bank, 32 Iraqi private banks, of which 6 Islamic banks, and 17 foreign branches, of which 5 are Islamic banks. The SOBs dominate the financial sector and account for the bulk of assets and credits.
Three of the SOBs, Rafidain Bank, Rasheed Bank and Trade Bank of Iraq (TBI), cluster around 89 percent of the banking system’s assets. The financial positions of Rasheed Bank and Rafidain Bank are fragile following years of quasi-fiscal operations.
As a first step to restructure these banks, the Ministry of Finance will, by endFebruary 2016, appoint international auditors to audit the latest financial statements of Rasheed Bank and Rafidain Bank according to international standards (structural benchmark, Table 2), in cooperation with the Executive Committee for the restructuring of these banks and the World Bank.
29. The CBI will continue to implement reform measures to enhance the stability of the banking sector in Iraq which includes inter alia: · Introducing the international bank account number (IBAN) system in Iraq; · Increasing the capital requirement of banks to ID 250 billion ($214 million), a level to which all private banks except one have increased their capital;
Contracting a consultant to assist the CBI in rating banks, whereby they rated 17 banks: three banks were rated “satisfactory”, eight banks rated “fair” and six banks “marginal”; · Contacting a consultant to assist the CBI in upgrading the prudential regulations on “Liquidity” and “Capital Adequacy Ratio”; ·
Working on reviewing and assessing CBI prudential regulations with the assistance of the IMF Middle East Technical Assistance Center (METAC); · Preparing a Deposit Insurance Scheme which stipulates the establishment of a corporation to be licensed by the CBI, of which banks will have the opportunity to take a share in the capital; · Contracting a private firm to provide the CBI with a credit registry system for sharing information among banks on their common existing and potential borrowers; ·
Issuing a banking law for financial institutions offering Islamic services; and · Penalizing financially and administratively banks and non-banks financial institutions for any non-compliance with laws and regulations in force.
http://ift.tt/1XTsqZ0
Thunderhawk: MEGA ALERT
Switzerland completes AIIB membership
GENEVA - Switzerland became on Monday a ratifying adherent of the China-sponsored Asian Infrastructure Investment Bank (AIIB), making the confederation the 37th country to complete the membership process.
Having submitted its ratification document, Switzerland will now be able to fully participate on the board of governors and have access to the bank's board of directors.
The country will also be entitled to have its say in the institution building process of the bank.
The confederation's stake in the bank's $100 billion capital stock will amount to a total of $706,4 million, to be paid in five annual installments.
Switzerland's voting power (0.8745 percent) will yield more clout than its financial input through the country's basic and founding member votes.
The Swiss Federal Council has nominated federal councillors Johann N. Schneider-Ammann and Didier Burkhalter in the capacity of governor and alternate governor of the bank.
http://ift.tt/1SIVHUV
Switzerland completes AIIB membership
GENEVA - Switzerland became on Monday a ratifying adherent of the China-sponsored Asian Infrastructure Investment Bank (AIIB), making the confederation the 37th country to complete the membership process.
Having submitted its ratification document, Switzerland will now be able to fully participate on the board of governors and have access to the bank's board of directors.
The country will also be entitled to have its say in the institution building process of the bank.
The confederation's stake in the bank's $100 billion capital stock will amount to a total of $706,4 million, to be paid in five annual installments.
Switzerland's voting power (0.8745 percent) will yield more clout than its financial input through the country's basic and founding member votes.
The Swiss Federal Council has nominated federal councillors Johann N. Schneider-Ammann and Didier Burkhalter in the capacity of governor and alternate governor of the bank.
http://ift.tt/1SIVHUV
via Dinar Recaps - Our Blog http://ift.tt/1NygxqJ
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